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The government has notified the country's newest bourse MCX-SX as a recognised stock exchange, paving the way for initial public offers, listing and trading of shares its platform.

MCX-SX (MCX Stock Exchange) has already got an approval from Sebi (Securities and Exchange Board of India) to function as a full-fledged stock exchange.

MCX-SX has been now notified as a 'recognised stock exchange' by the Ministry of Corporate Affairs (MCA), which would allow the bourse to list a company on its platform pursuant to an IPO and offer book building, besides other facilities for the public offers and trading of shares.

The government notification as a 'recognised stock exchange' is also necessary for any investment in shares of a company listed on its platform to treated as "quoted investment". Besides, there are various other procedural benefits that a company gets after being listed on a recognised stock exchange.

MCX-SX is preparing to begin live trading in various asset classes, including equity and equity derivatives, on its platform as it has got all the necessary approvals from Sebi.

Earlier on December 19, it got the 'commencement certificate' from Sebi, which was the final regulatory clearance to go live in new product segments such as equity, wholesale debt (bonds) and interest rate derivatives.

The much-talked about trading launch of MCX-SX, the third full-fledged equity exchange in the country, is likely to begin in January.

MCX-SX is currently providing trading platform for only currency derivatives segment and would become a full-fledged stock exchange after launch of other segments like equity, equity derivatives, bonds and interest rate derivatives.

After going live, MCX-SX would compete with other full- fledged nationwide stock exchanges like the NSE and BSE.